Banks Caught Hiding Their Debt Levels from Investors and You

The Wall Street Journal has reported that several large banks hid their risk levels for the last five quarters, according to the statistics from the Federal Reserve Bank of New York.

About 20 banks, including J.P. Morgan Chase & Co., Morgan Stanley, Goldman Sachs Group Inc, Citigroup Inc. and Bank of America Corp. hid the actual debt that they had taken for funding trading in securities. They used to temporarily lower their debts at the end of each quarter when banks have to publicly disclose their debt data and then they increased their debt levels again in the next quarter. [Read more…]

Will Greece be The Next Fallen Economy?

While investors are finding some solace and showing a modicum of approval in Greece´s plans to cut spending and raise taxes in order to meet their debt payments. The same investors are greedily licking their chops wondering who will be the next to fall victim to mismanagement and future debt default. [Read more…]